Home / Knowledge / News / Textiles / Market trades lower

Market trades lower

31
Oct '08
Just when we thought commodities were building up for another run, the dollar ran up and put out the fire. Some more unwinding of foreign currencies in Europe lead to some strength in the dollar and energies, grains, metals and softs all fell lower. Cotton managed to put in another new low, but did hold above 45 cents. Volume was actually above average at 23,000 futures and 7,000 options as we even got a bounce in open interest overnight of 3500 new contracts.

We had very weak export sales with only 58,000 bales and that was well off the 4 week average. There was a 46,000 bale decert which has pushed cert stocks under 1.1 million bales. This is another friendly factor, but there is no reason to see the Z'08 has any real chance of going higher before expiration.

Demand remains hand to mouth even at these low levels and the pressure from the new crop will keep Z'08 from mounting much of a rally. H'09 might be the first opportunity for a run higher, but that may not be more than the mid 50's. We are starting to set up for another possible sideways trading range between 45-55 cents for the spot month?

Technically we tested the low again today, which held up for the most part. RSI is in the low 30's, and MACD is undecidedly making a double cross. It's very likely for the market to keep testing the downside unless the dollar makes a significant fall from these levels. Demand has slowed down after large devaluations in foreign markets making local cotton more competitive.

This could prevent us from establishing a strong bottom especially if there are no major harvest delays. Z'08 seems to be setting up for a weak expiration but maybe we can start to build a more bullish case for the H'09 which will have more bullish seasonal factors.

ECOM USA


Must ReadView All

Pic: NIST

Textiles | On 3rd Jul 2020

Multiple fabric layers improve cotton's efficacy in masks

The US National Institute of Standards and Technology and a...

Pic: Shutterstock

Textiles | On 3rd Jul 2020

CSIRO team modifies cotton to make it naturally coloured

A team of researchers at Australia's Commonwealth Scientific and...

Pic: Shutterstock

Textiles | On 3rd Jul 2020

Textile waste in US rose by 78% in less than 20 yrs: RRS

Textile waste in the United States has increased by 78 per cent in...

Interviews View All

Vidhyaa Shankar. S, A Ganapathi Chettiar

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Top executives, Textile industry

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Footwear industry, Head honchos

Footwear industry
Head honchos

Personalised and differentiated footwear is in high demand

Alexander Foll,

Alexander Foll

Germany-based H Stoll AG & Co KG manufactures flat knitting machines....

Anurag Mohota,

Anurag Mohota

Located in the heart of cotton growing belt of India, Gimatex is a...

Fan Liyuan,

Fan Liyuan

Chinese company Jiangsu Yingyang Nonwoven Machinery, established in 1993,...

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search